₦airaland Forum

“90% of all millionaires become so through owning real estate.” Andrew Carnegie

Everyone wants a piece of land. It’s the only sure investment, it can never depreciate like a car or a washing machine.” Russel Sage

“When you invest, you are buying a day that you don’t have to work.” Aya Laraya

“90% of all millionaires become so through owning real estate.” Andrew Carnegie

“The wise young man or wage earner of today invests his money in real estate.” Andrew Carnegie

Every citizen of Nigeria is empowered to acquire and own immovable property anywhere in Nigeria. However, the right to own immovable property like every other right is not absolute but subject to certain qualifications. The law of compulsory acquisition of land in Nigeria is rooted in the country's constitution. It is enshrined in the Nigerian Constitution that every Nigerian has the right to own private property and that such property shall not be acquired compulsorily, except in the manner and for the purposes prescribed by a law that requires both the payment of prompt compensation and compliance with the rule of law on access to the court. The Land Use Act of 1978 provides that all lands comprised in the territory of each state in Nigeria are vested in the governor of that state and such land shall be held in trust and administered for the use and common benefit of all Nigerians, and the Governor may revoke a right of occupancy for overriding public interest.

OVERRIDING PUBLIC INTEREST
Overriding public interest simply means the acquisition of private individual's land for the use of the government for the benefit of the state. Thus, when an individual's rights in land are being revoked for the purpose of using it for community projects, then we can say such land has been acquired for a public purpose.

In the acquisition of individual land by the government for overriding public purposes, the government must show that such land is being acquired for public use and such land cannot be used for individual benefit. The Court of Appeal, per Salami JCA in Olatunji v. Military Governor of Oyo State held among other things that the acquiring authority is required to state one or a combination of the public purposes for which the land was being acquired in his notice to the holder of a right of occupancy to enable the holder or occupier to challenge the acquisition, the court went further to state that it is not for an individual to speculate or presume that his land is being acquired for public use, he must be notified as to why his land is being acquired by the government.

Thus, where it is proven that the land is to be used for private purpose, such acquisition will be vitiated by that reason, also, a land compulsorily acquired for a public purpose can be vitiated where it was subsequently diverted to serve a private need. If a property is ostensibly acquired for a public purpose and it is subsequently discovered that it has directly or indirectly been diverted to serve private needs, the acquisition may be vitiated.

PUBLICATION OF NOTICE IN THE GAZETTE
The court in Olatunji v Military Governor of Oyo State held that the requirement that acquisition of private lands should be published in the national gazette only constitute notice to the whole world and cannot be taken as a substitute for the notice to be given to the individual owner of the land. Thus, nothing can waive the requirement of personal notice to the individual owner of the land compulsorily acquired. It should also be noted that such a Notice to the individual landowner must be personally served on the individual concern.

The Land Use Act 1979 specifically highlighted those projects that can fall into the category of public purpose and they include: the building of schools, construction of roads and bridges, laying of pipelines, construction of mines, etc.

COMPENSATION
Compensation is an integral part of the process of compulsory acquisition of land in Nigeria. Its importance cannot be overemphasized as a failure to compensate the occupier renders the acquisition a nullity. Section 44 of the 1999 Constitution of the Federal Republic of Nigeria (as amended) provided that no individual land should be acquired without compensation. It should as well be noticed that payment of compensation for lands acquired should be prompt and not delayed unnecessarily.

The Court in National University Commission v Oluwo stated that the rights of an individual to acquire properties anywhere in Nigeria is enshrined in the constitution and it carries with it the right to dispose of such properties, thus, any individual whose land the government compulsorily acquired is entitled to prompt payment of reasonable compensation.

In Goldmark (Nig.) Ltd. v. Ibafon Co. Ltd, the Court held that there is no doubt the government has the power and authority to acquire land compulsorily for public use, however, such power is exercisable in accordance with the proper procedure for acquisition, that is, proper notice must be given to the owner of the land and reasonable compensation must be paid.

CONCLUSION
In summary, ownership of land is the right of every citizen in Nigeria, the right to acquire as well as the right to dispose of is enshrined in the constitution and legislation. However, this right to acquire and hold land is subject to the power given to the governor of each state by the Land Use Act as well as the right given under the constitution, therefore, the government can only acquire individuals' lands compulsorily upon the payment of compensations. Where any individual find the acquisition of his/her land to be unlawful, such an individual can successfully challenge the acquisition in the court of law.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Culled from mondaqdotcom

“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”
-Theodore Roosevelt

“Owning a home is a keystone of wealth… both financial affluence and emotional security”.
Suze Orman

“The wise young man or wage earner of today invests his money in real estate.” Andrew Carnegie

“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”
-Theodore Roosevelt

“The wise young man or wage earner of today invests his money in real estate.” Andrew Carnegie

“You will come to know that what appears today to be a sacrifice will prove to be the greatest investment that you will ever make.” Gordon B. Hinkley

“When you invest, you are buying a day that you don’t have to work.” Aya Laraya

Everyone wants a piece of land. It’s the only sure investment, it can never depreciate like a car or a washing machine.” Russel Sage

“When you invest, you are buying a day that you don’t have to work.” Aya Laraya

“It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.” ~Donald Trump

“When you invest, you are buying a day that you don’t have to work.” Aya Laraya

“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”
-Theodore Roosevelt

“It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.” ~Donald Trump

“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”
-Theodore Roosevelt

“You will come to know that what appears today to be a sacrifice will prove to be the greatest investment that you will ever make.” Gordon B. Hinkley

“The wise young man or wage earner of today invests his money in real estate.” Andrew Carnegie

“The wise young man or wage earner of today invests his money in real estate.” Andrew Carnegie

The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left.” Robert Kiyosaki

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The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left.” Robert Kiyosaki

Acquisition of land in Nigeria involves various steps and stages which are necessary for both the vendor and purchaser. Before progressing with a sale or purchase of a land, it is advisable one involves a solicitor to guide and ensure that the acquisition smooth and proper.

In this write up, we will summarize the procedure for acquisition of land in Nigeria.

The Procedure for Land Acquisition is:

1. MAKING ENQUIRIES ON THE LAND

This is needed to determine the existence or otherwise of any defects in the land to be purchased. It is also necessary to determine if the land is suitable for habitation, commercial purposes or any other activities depending on the purchaser’s need for the land.

Enquiries made about the land would reveal existing encumbrances, pending disputes and more about the land to be purchased.

The purchaser’s solicitor owes a duty to the purchaser to examine the title of the land, any existing or potential disputes, and the appropriate method of sale of the land.

2. DEDUCING TITLE

The vendor must prove to the purchaser that he has good title to the land he seeks to sell.

Deducing title is just a means of proving to the purchaser that the vendor has title to the land to be sold and also has the right to sell the land.

The vendor’s solicitor must deduce title, and in doing so he must present the purchaser/purchaser’s solicitor with the following documents:

1-Abstract of title - which is an analysis of all the major transactions if any that has been done on the land.
2-Epitome of title – which contains a list and particulars of all documents affecting the land as well as the copies of the said documents.

3. CONTRACT OF SALE

To show the interest and willingness of the parties toward the acquisition of land, a formal Contract of Sale of Land must be prepared. This contract may be prepared by vendor or purchaser’s solicitor. But usually, the vendor’s solicitor prepares it.

The purchaser’s solicitor where handed the Contract of Sale of Land prepared by vendor’s solicitor must inspect the same and if satisfied proceeds with a meeting involving all the parties where the following events may take place:

1-Payment of deposit of the purchase price by the purchaser to the vendor/vendor’s solicitor.
2-Signing of contract of sale by the parties and their witnesses.
3-Issuance of purchase receipt by the vendor to the purchaser.
4-Handling over all information and documents that affect the title to the land by the vendor to the purchaser.

4. INVESTIGATION OF THE TITLE

Investigation of the title is done by the purchaser’s solicitor after the vendor’s solicitor has deduced tittle. This step is very important and necessary as documents presented by the vendor’s solicitor is not the final proof of the title to the land to be acquired.

The steps for carrying out the investigation are as follows:

1-Collection of the abstract of title and epitome of title from the vendor’s solicitor and examination of the documents.
2-Search to be done in the following places depending on type of title the land:
I-Land Registry - compulsory.
II-Court Registry - if the land has been subject to litigation.
III-Probate Registry - if it is the land of a deceased person.
IV-Corporate Affairs Commission (CAC) – if it is a company land.
-Physical inspection of the land.
-Traditional history.
-Search report - prepared by the purchaser’s
solicitor detailing the outcome of the search
conducted on the land.

5. PREPARATION OF THE DEED OF ASSIGNMENT

*After the contract of sale of the land has been exchanged and the investigation to the title of land has been conducted successfully, the next important stage is competition, which involves preparation of a deed of assignment.

The steps for completion include the followings:

1-The purchaser’s solicitor prepares the deed of assignment and hands them over to the vendor’s solicitor for a review.
- Where the vendor’s solicitor agrees with the
terms contained in the deed of assignment,
he sets up a meeting in his office for the
completion of the sale of land.
- Balance of the purchase price is paid by
the purchaser.
- Execution of the deed of assignment by the
parties and their witnesses will follow.
-The vendor’s solicitor hands over the
original copies of all documents, duly
registered survey plan, copies of the duly
executed Deed of Assignment for
perfection and the duly executed Form 1
for the Governor’s Consent.
Once the deed of assignment is executed by the parties, their designation changes from vendor and purchaser to Assignor and Assignee.

6. PERFECTION OF TITLE

This is the final stage to the acquisition of land in Nigeria and it is done to perfect the assignee’s title to the land through the approval of the Governor in line with the Land Use Act.

Essentially, the procedure for the perfection of title includes three major stages to wit:

-Governors Consent.
-Stamping
-Registration
In conclusion, land acquisition in Nigeria requires a lot of attentiveness as purchasing a land does not come at a small cost. Hence a solicitor must exercise due diligence from the enquiry stage down to the perfection stage ensuring that his or her client is informed of the progress of the transaction and give cautions and warnings where necessary.

Everyone wants a piece of land. It’s the only sure investment, it can never depreciate like a car or a washing machine.” Russel Sage

“The wise young man or wage earner of today invests his money in real estate.” Andrew Carnegie

Think about it… what if you had bought land in these areas BEFORE their explosions in growth?

Is Land Banking a Good Investment?
Land banking is something that major developers and retailers have been doing for decades because it happens in every major city in America.

Look at your nearest major metropolitan area and compare how it looks today to what it looked like ten years ago. If a city is growing, there will be a constant new development of residential neighborhoods and commercial subdivisions. New retail establishments are always being created or revitalized, no matter what the real estate market looks like.

All it takes is for an investor to go in and buy land on the outskirts of a city and then they wait for the population to grow to them. They’re buying a property at today’s low prices (before anybody else perceives the value) and waiting until the city grows to them. When this happens, the land prices spike in value and they’re able to cash in on their land investment. MANY multi-millionaires have been created from this one strategy, and you can do it too.